Citation issued: may 2, 2014

philip richard derksen

Citations are authorized by the Law Society of BC's Discipline Committee and list allegations against a lawyer that will be considered at a discipline hearing. Please note that allegations in a citation are unproven until a discipline hearing panel has determined their validity.

Nature of conduct to be inquired into:

1. You failed to notify the Executive Director of the Law Society in writing of the circumstances of one or more of the following unsatisfied monetary judgments against you and your proposal for satisfying such judgments, contrary to Rule 3-44 of the Law Society Rules:

(a) Certificate dated November 24, 2008, issued pursuant to the Income Tax Act, under Federal Court Action No. [number], in the amount of $20,040.12;

(b) Requirement to Pay dated November 16, 2011, issued by the Canada Revenue Agency, account number [number], in the amount of $57,572.47; and

(c) Requirement to Pay dated July 17, 2012, issued by the Canada Revenue Agency, account number [number], in the amount of $55,893.47.

This conduct constitutes professional misconduct or a breach of the Act or rules, pursuant to s. 38(4) of the Legal Profession Act.

2. You failed to comply with the Order of a Law Society Hearing Panel made November 17, 2013 to provide a complete and substantive response, by December 15, 2013, to the inquiries made in various letters from the Law Society, by failing to provide some or all of the following information as requested in those letters:

(a) copies of your correspondence with the Canada Revenue Agency;

(b) copies of any material provided to you by Canada Revenue Agency;

(c) the nature of the underlying debt to the Canada Revenue Agency;

(d) whether or not the Canada Revenue Agency gave you written notice of the Certificate dated November 24, 2008, issued pursuant to the Income Tax Act, under Federal Court Action No. [number], in the amount of $20,040.12, and if notice was given, when it was received by you;

(e) if the Canada Revenue Agency has ever issued a garnishing order against you regarding unpaid income tax, HST or GST, including any relevant documents; and

This conduct constitutes professional misconduct pursuant to s. 38(4) of the Legal Profession Act.

3. Between August 2011 and December 2012, you failed to comply with Law Society accounting rules governing receipt of funds you received from your client, PB. In particular, you failed to do one or more of the following:

(a) deposit a $500 cash retainer, received on or about August 3, 2011, into your law firm’s trust account as soon as practicable, contrary to Rule 3-51;

(b) record receipt of a cheque in the amount of $500 received on or about September 28, 2011 purportedly in payment of your fees, as required by Rule 3-63(2);

(c) deliver a bill to your client until after November 14, 2012, or at all, in respect of the funds received on August 3, 2011 once you were entitled to bill for services rendered, as required by Rule 3-63(3) and section 69 of the Legal Profession Act;

(d) deliver a bill to your client until after November 14, 2012, or at all, in respect of the funds received on September 28, 2011, as required by Rule 3-63(3) and section 69 of the Legal Profession Act.

This conduct constitutes professional misconduct or a breach of the Act or rules, pursuant to s. 38(4) of the Legal Profession Act.

4. Between August 15, 2011 and December 2012, you failed to comply with Law Society accounting rules governing receipt of a $1,000 cash retainer received from your client, TF. In particular, you failed to do one or more of the following:

(a) deposit the funds into your law firm’s trust account as soon as practicable, contrary to Rule 3-51;

(b) record receipt of the funds, as required by Rule 3-63(2); and

(c) deliver a bill to your client in respect of the funds, once you were entitled to bill for services rendered, until after November 14, 2012, or at all, as required by Rule 3-63(3) and section 69 of the Legal Profession Act;

This conduct constitutes professional misconduct or a breach of the Act or rules, pursuant to s. 38(4) of the Legal Profession Act.

5. Between November 2011 and June 2012, you breached Rule 3-52(3) by:

(a) directing the Legal Services Society to deposit funds owing to you to your law firm’s pooled trust account, when those funds did not meet the definition of “trust funds” pursuant to the Law Society Rules;

(b) failing to promptly notify the Legal Services Society that they were depositing funds owing to you to your law firm’s pooled trust account and directing them to deposit the funds to your general account instead; or

(c) failing to follow up with the Legal Services Society to ensure that they were depositing funds owing to you to your law firm’s general account.

This conduct constitutes professional misconduct or a breach of the Act or rules, pursuant to s. 38(4) of the Legal Profession Act.